Nvidia Anchors Hut 8's $20B AI Lease Bet in Texas

Hut 8 has secured one of the largest data center lease agreements in history, with Nvidia as the undisclosed tenant behind two 15-year leases at Hut 8's Beacon Point AI campus in Nueces County, Texas. The base value of the combined leases is $19.6B, which could climb to $50.2B if renewal options are exercised.

The deal involves two phases, each covering 352 megawatts of IT capacity, for a total of 704 MW across the full campus. Hut 8 must build infrastructure conforming to Nvidia's DSX reference architecture, a design framework tailored specifically for hyperscale AI workloads including model training and inference at scale.

The end goal is a full 1 gigawatt data center campus. Hut 8's stock surged nearly 30% in mid-May following news of the first lease. A 15-year commitment from an investment-grade counterparty provides long-duration revenue visibility that reduces Hut 8's exposure to crypto price cycles.

However, there is construction execution risk and concentration risk. A 704 MW campus built to a specific proprietary architecture is an enormously complex undertaking, and delays or cost overruns would hit Hut 8 before they hit Nvidia. Two leases with one tenant means Hut 8's Beacon Point revenue story lives or dies on that relationship.